What Are the Investment and Trade Opportunities in Russia?

With a surface area of 17,098,246 km2 and a population of 145.9 million, Russia, located in Northern Eurasia, shares borders with many countries including Norway, Finland, Poland, and China from northwest to southeast. In addition to its large area, Russia also draws attention with its economy. Rich in monetary reserves, with a solid central bank and management, Russia has become a very favorable country for investment and trade.

Russia hosts 17.7 million m2 of shopping centers and is considered the largest e-commerce market in Europe due to many different factors. Clearly defining its place in the market and many sectors, Russia displays a reliable attitude towards investors and institutions or organizations wishing to trade.

Considering all these data, Russia offers a profitable process for investors and institutions or organizations wishing to trade. Furthermore, it allows the exploitation of its opportunities by laying bare a healthy trade and investment process with its robust economy.

How Is the Distribution of Investment in Russia by Sectors?

Russia, which shows itself in many areas of investment processes, hosts most sectors and continues to improve its economic balance in this way. These sectors include:
• Agriculture and Livestock
• Industry
• Tourism
• Contracting Services
• Mining
• Energy
.

-Since the soil structure in the northern regions is not suitable for agriculture and livestock husbandry, the agriculture and livestock sector has made its mark in the southern regions of Russia. This only accounts for 32% of the country. Livestock production is shown to account for 52%
-In the industrial sector, Russia, which lost balance after communism, has begun to recover, albeit slowly, and continues this effort. This effort has generally been demonstrated in cities like Moscow, St. Petersburg, Yekaterinburg, and Novosibirsk, which have been the main sources of its success. For this reason, industrial sector investments are welcomed by Russia.

-In the tourism sector, Russia, which is open to investment from many institutions or organizations, especially in the hospitality sector, is visited by an average of 22 million tourists each year. The most frequently visited cities are around St. Petersburg and Moscow.

-Successful in the contracting services sector, Russia continues to prove itself by increasing the construction of housing to meet housing needs by 30%. Russia is a basic exporter among many countries due to its thousands of natural minerals and resources. These resources mainly consist of oil and metal ores. With its abundant resources, Russia is one of the pioneers in this sector.

-Despite being the 4th largest electricity producer in the world, Russia is also the largest consumer. Therefore, it is highly likely that Russia will need to invest in energy for many years to come.

The sectors mentioned above are extremely open and favorable to investments. Russia, which looks favorably on investments that will take place in these sectors, is a suitable country in terms of offering investment opportunities.

What Are the Advantages of Investing in Russia?

There are many advantages to investing in Russia. These include:
• A constantly developing and growing economy.
• World-renowned and well-known human capital.
• Comprehensive government support
• A stable political system
• Quite a lot of natural resources compared to the rest of the world.
• The uniqueness of its geopolitical position.
• A favorable taxation system for investment.
.
Russia has succeeded in making itself known in both the sector and the market. The above points clearly indicate that Russia promises success in investment and is open to offers. As a result of these offers, it will be possible to access not only success but also the aforementioned advantages that Russia provides.

5 Reasons to Invest in Russia

• A country with very favorable conditions for trade.
• A country open to institutions or organizations wishing to establish businesses for investment purposes.
• An innovative country due to its openness to development and innovation.
• More suitable to be preferred due to its need for investments.
• A country that instills confidence in the investment process with its solid central bank.

Russia has demonstrated its suitability for trade with the many necessary housing and shopping centers it has built. It has also left open doors for many institutions or organizations wishing to enter this market, offering opportunities. One of these opportunities is to share its innovative side. Russia's need for investments has driven it towards such policies. By initiating this process, Russia has also made the process reliable and healthy with its stable structure. All of this has clearly shown why investing in Russia makes sense.

How to Establish a Company to Invest in Russia?

Foreign legal entities, foreign individuals, and real persons can step into the investment sector in Russia by forming partnerships or joining economic communities.
So, how do institutions or organizations that manage to enter the sector establish their companies?
When institutions or organizations attempt to establish a company as foreign legal entities, foreign individuals, or real persons, they are presented with two options. These include:
• Limited Liability Companies
• Joint Stock Companies (ZAO)
.

-Limited Liability Companies are relatively easier to operate than Joint Stock Companies and are created by one or more individuals. The individuals or institutions that establish these companies are not responsible for the company’s debts. What they are responsible for are their shares in the company. An additional point to note about Limited Liability Companies is that the capital is divided into shares.

-Joint Stock Companies (ZAO) contain an element that must be agreed upon before their establishment by institutions or organizations. This element is that Joint Stock Companies can be established in two forms, open and closed. The most obvious difference between these two is the transfer of shares. In Open Joint Stock Companies, shareholders can transfer their shares to other institutions, organizations, or investors without informing the other shareholders. There is no limit to the number of shareholders. In contrast, in Closed Joint Stock Companies, other shareholders are informed of any potential transfer of shares, and they are given priority. This way, the number of shareholders does not exceed a certain limit.

Following recent innovations in Russia, these two categories have been used healthily.

After determining the type of company, the necessary tax system should be selected, required documents (Registration certificate, address information, information about the founding individuals, etc.) should be prepared, and an application should be made to the State Registration Chamber of the Russian Federation. After this tedious process, the necessary documents related to the company to be established should be collected, and the company is ready to enter the market.

In this way, one can take advantage of Russia's highly favorable structure for investment, and commercial or investment relationships can be established through discussions with many different countries that Russia can bring along. Given this situation, investment in Russia benefits from all the advantages and comes one step closer to success.